You've got to set the machine type to "Mega STE", then you should be
able to see at least the Atari logo and memory test. But I also never
managed to boot this TOS to the desktop either, it sooner or later
crashes with some bombs on the screen.
I was trying some stuff in the latest Hatari master and remembered this particular TOS, too. It's still crashing - first, one has to set memory >1 MB to at least get the Atari logo. Then there's a really suspicious message "BAD ROM CRC IN CHIP E" and only after that one can see the RAM test (again very suspiciously showing 1024 KB by 2 MB config but 4096 KB by 4 MB config...). Which passes fine but as soon as it is supposed to boot from (IDE) drive it bombs on a double bus error.